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Argentina’s Proposed Reforms to Anti-Money Laundering and Combating Terrorism Financing (AML/CFT) Laws

The Argentine government has proposed a set of amendments to its AML/CFT laws, aiming to incorporate new obligations and definitions related to virtual assets and service providers. The following are the key points of the proposed reforms:

Definition of Obligated Entities

  • Current Definition: The current text considers as obligated entities legal entities authorized by the National Securities Commission to operate in crowdfunding systems, lawyers, and other professionals acting on behalf of clients for specific transactions.
  • New Definitions: The reform project proposes to add virtual asset service providers (VASPs) to this list of obligated entities.

Virtual Asset Service Providers (VASPs)

  • Definition: VASPs are any natural or legal person conducting certain activities related to virtual assets, such as exchange between virtual assets and legal tender, transfer of virtual assets, custody, administration, and participation in financial services related to the offer or sale of a virtual asset.
  • Examples: This would include exchanges, custodial wallets, and other entities that provide services related to virtual assets.

Virtual Assets

  • Definition: Virtual assets are digital representations of value that can be traded and/or transferred digitally and used for payments or investments.

Risk-Based Approach (RBA)

  • Definition: The regulation and application of measures to prevent or mitigate money laundering and the financing of terrorism, proportional to the identified risks.
  • Key Components:
    • Risk identification
    • Evaluation
    • Monitoring
    • Administration
    • Mitigation

FIU Resolutions

  • References: The text mentions FIU Resolution No. 300/2014 and a statement on operations with virtual assets (20.05.2020), which suggest that VASPs must pay special attention to emerging risks, establish monitoring mechanisms, report all operations carried out with virtual currencies, and adapt Argentina’s AML system according to GAFI recommendations.

GAFI Recommendations

  • Reference 1: Risk Assessment: Countries must identify, assess, and understand their risks of money laundering/terrorism financing and apply measures proportionate to the identified risks.
  • Recommendation 15 (New Technologies): Although not explicitly mentioned in the provided text, Recommendation 15 by FATF deals with new technologies and their implications for AML/CFT regulations, including the oversight of VASPs.